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Compare mortgage refinance rates in Florida.
Key Points
• Mortgage refinance rates are influenced by a variety of economic factors, like the 10-year Treasure Note and housing inventory.
• A half-percentage point reduction in your mortgage refinance rate can lead to significant savings on the interest you pay over the life of the loan — to the tune of tens of thousands of dollars.
• Refinancing to a 15-year mortgage can reduce the total interest paid over the life of the loan, in exchange for higher monthly payments.
• Government-backed mortgages — like FHA, VA, and USDA loans — often come with lower mortgage refinance rates.
• When considering a mortgage refinance, make sure to factor in closing costs, which typically range from 2% to 5% of the loan amount.
Introduction to Mortgage Refi Rates
Refinancing your mortgage can be a savvy financial maneuver, allowing you to replace your existing mortgage loan with a new one with improved terms and ideally a lower interest rate. Whether your objective is to reduce your monthly payments, shorten the duration of your loan, or tap into your home equity, the specific type of refinance you opt for will directly influence the mortgage refinance rate you are offered. This comprehensive guide aims to clarify the factors that determine mortgage refinance rates and empower you to secure the most favorable rate available in the market.
💡 Quick Tip: How soon can you refinance your mortgage? It varies by loan type, but typical waiting periods are 6 to 12 months.
Where Do Mortgage Refinance Interest Rates Come From?
Mortgage refinance interest rates are influenced by economic factors, naturally, but also by your individual financial profile. The strongest indicator of where mortgage interest rates are going lies in the 10-year U.S. Treasury Note. When rates on the note rise, mortgage interest rates tend to rise too. Another factor is the housing market. When inventory is high, lenders may lower rates to lure customers. We’ll get to your role in the interest rates you’re offered, and how you may nudge them lower, a little later.
How Interest Rates Affect Home Affordability
As you may remember from when you took out your original mortgage, current mortgage rates significantly impact the affordability of your home loan. Same goes for mortgage refinancing: Your monthly payment is determined by your interest rate, as well as your loan amount and repayment term.
| Interest Rate | Monthly Payment | Total Interest |
|---|---|---|
| 6.00% | $1,199 | $231,677 |
| 6.50% | $1,264 | $255,085 |
| 7.00% | $1,330 | $279,021 |
| 7.50% | $1,398 | $303,403 |
| 8.00% | $1,467 | $328,309 |
Why Refinance in Florida?
Not every homeowner who refinances does it for the same reasons. Sure, if current mortgage refinance rates are lower than your existing rate, refinancing can reduce your monthly payments and save you money over the life of the loan. But there are benefits even when rates are flat. If home values in your area of Florida have shot up, you might want to cash out some of your equity. (By the way, you typically want at least 20% equity in your home before refinancing.) The specific reason for refinancing will determine the type of refi you choose and the rate you qualify for.
Common Reasons to Refinance a Mortgage
• The obvious one: You qualify for a lower mortgage refinance rate due to improved credit or market conditions.
• You want to change your repayment term to lower monthly payments or pay off your loan faster.
• You want to cash out home equity for expenses like education or home improvements.
• Your adjustable-rate mortgage is about to reset, and you want to switch to a fixed-rate loan for stability.
• You have an FHA loan and 20% equity, and you want to eliminate mortgage insurance by refinancing into a conventional loan.
• You’d like to remove a cosigner from your mortgage.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
How to Get the Best Available Mortgage Refi Interest Rate
Above, we mentioned how your financial profile influences the interest rate offers you receive. To secure the best mortgage refinance rate, you can build your credit score by always paying bills on time and avoiding new debt. You can also maintain a debt-to-income ratio below 36% — really, the lower the better.
When the time is right to refinance, shop around and compare interest rates and fees from multiple lenders. If you’re staying put in your home for a while, consider purchasing discount points to lower your rate. And if possible, shorten your loan term to 10 or 15 years for lower rates than longer terms.
How will you know the time is right? Because you’ve been keeping an eye on mortgage refinance interest rates:
Understand Trends in Florida Mortgage Interest Rates
Historical U.S. Mortgage Interest Rates
The chart below shows the trajectory of interest rates from the 1970s to present. Some homeowners consider current mortgage refi rates high compared to the rock bottom interest rates we saw during the height of the pandemic. But rates today are near the historical average.
Historical Interest Rates in Florida
Florida interest rates on average stay close to national rates — sometimes they’re a bit higher, sometimes lower. Also, keep in mind that advertised rates are just averages. Your rate might be higher or lower, depending on your financial profile.
| Year | Florida Rate | National Rate |
|---|---|---|
| 2000 | 7.96 | 8.14 |
| 2001 | 7.03 | 7.03 |
| 2002 | 6.53 | 6.62 |
| 2003 | 5.78 | 5.83 |
| 2004 | 5.75 | 5.95 |
| 2005 | 5.94 | 6.00 |
| 2006 | 6.70 | 6.60 |
| 2007 | 6.55 | 6.44 |
| 2008 | 6.17 | 6.09 |
| 2009 | 5.11 | 5.06 |
| 2010 | 4.87 | 4.84 |
| 2011 | 4.59 | 4.66 |
| 2012 | 3.67 | 3.74 |
| 2013 | 3.86 | 3.92 |
| 2014 | 4.19 | 4.24 |
| 2015 | 3.96 | 3.91 |
| 2016 | 3.77 | 3.72 |
| 2017 | 4.10 | 4.03 |
| 2018 | 4.62 | 4.57 |
Next, we’ll look at how the type of mortgage refi you choose affects your interest rate.
Choose the Right Mortgage Refi Type
Mortgage refinance rates vary based on the specific type of refinance chosen. Each option presents distinct characteristics and advantages that cater to diverse financial needs.
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, entails altering the interest rate or loan duration associated with your existing mortgage. These types of refinances typically come with higher mortgage refinance rates when compared to government-backed loans. Nonetheless, they provide flexibility and can be a suitable option for individuals seeking to lower their interest rate or modify their repayment term. Two variations on conventional refis are the 15-year term and the adjust-rate mortgage (ARM).
15-Year Mortgage Refi
Refinancing to a 15-year mortgage can be a strategic move, if you can afford the higher monthly payments. The chart below shows how switching to a 15-year term affects the monthly payment and total interest paid on a $1 million mortgage. Regardless of your interest rate, the shorter term can save you hundreds of thousands of dollars.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) are initially offered with lower interest rates compared to fixed-rate loans, making them an attractive option for homeowners with short-term plans. Opting for an ARM can result in reduced monthly payments, provided that you intend to move before the interest rate undergoes adjustments. It is important to note, however, that the interest rate has the potential to increase over time, which may lead to higher payments in the future. Therefore, this option is most suitable for individuals who are certain that they will not reside in the property for an extended period.
Cash-Out Refi
Cash-out refinances allow homeowners to tap into their home equity, receiving a lump sum that can be used for home renovations or debt consolidation. If your home is valued at $500,000 and you owe $300,000 on your current mortgage, you have $200,000 in equity. A lender might allow you to borrow up to 80% of your equity, leaving you with $100,000 after paying off your existing mortgage. Just be aware that a cash-out refinance typically comes with higher mortgage refinance rates than traditional refinances.
FHA Refi
FHA loans, insured by the Department of Housing and Urban Development, frequently come with lower mortgage refinance rates, making them an enticing choice for homeowners. FHA Simple Refinances and FHA Streamline Refinances are specifically tailored for individuals with existing FHA loans, while FHA cash-out refinances and FHA 203(k) refinances (specifically designed for renovations) are available to homeowners who do not currently have an FHA loan. These options can not only assist in reducing monthly payments but also provide access to funds for home improvements.
VA Refi
VA loans, guaranteed by the Department of Veterans Affairs, present some of the most competitive mortgage refinance rates available, making them an exceptionally advantageous option for eligible veterans. The Interest Rate Reduction Refinance Loan (IRRRL) has been specifically tailored for homeowners with an existing VA loan, empowering them to secure a reduced interest rate or transition from an adjustable-rate to a fixed-rate mortgage. This can lead to a significant decrease in monthly payments and the total interest paid throughout the duration of the loan.
Compare Mortgage Refi Interest Rates
Once you’ve landed on the type of mortgage refi that suits your needs, it’s time to shop for a refi. Review average mortgage refinance rates to get a benchmark. You might want to get prequalified with multiple lenders to see personalized offers (that won’t ding your credit score). Compare each loan’s annual percentage rate (APR) to understand the total cost, including fees and any discount points. Consider the trade-off between rate and fees; lower rates often come with higher costs, and vice versa (thus the no-closing-cost refinance).
Use Online Calculators
Online refinance calculators allow you to estimate your new monthly payment and compare various refinance options. This is what homeowners mean when they say they’ve “crunched the numbers.”
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage can be a shrewd financial maneuver, but it necessitates research and a clear understanding of your financial goals. Whether you seek to reduce your mortgage refinance rate, access your home equity, or transition to a different loan type, comprehending the available options and preparing your financial profile can empower you to make an optimal decision. Always weigh the potential savings against the associated costs, and thoughtfully consider your long-term financial aspirations.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Are refinance rates going to drop?
No one really knows where interest rates are headed. The real question is whether the potential savings of a mortgage refinance are worth the closing costs and other fees. Make sure you understand exactly how long it will take for you to recoup those costs before you start to benefit from the savings.
Can I refinance when rates go down?
Yes, you have the option to refinance your mortgage when interest rates decline. But lower interest rates aren’t the only reason to refinance. Regardless of your financial goals, you need to evaluate whether the potential savings outweigh the associated costs, which can be 2% to 5% of the loan amount.
When is it smart to refinance your home?
It’s a prudent financial strategy to pursue mortgage refinancing when you can secure a lower interest rate. This can reduce the financial burden associated with your monthly payments and lead to substantial savings in total interest paid over the duration of the loan. But there are other ways to save money on interest, such as shortening your loan term. As long as the savings you’ll reap exceed the cost of the refinance, it can be a smart move.
How much does 1 percent lower your monthly payment?
A 1% reduction in the interest rate of your mortgage refinance can lead to a significant decrease in your monthly payment. Consider a $300,000 mortgage with an interest rate that drops from 7.00% to 6.00%. This 1% reduction can result in a decrease of approximately $170 in your monthly payment. The higher your loan principal, the greater your savings.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance